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41 Cards in this Set
- Front
- Back
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What is an increase in real GDP or real GDP capita over some time period |
Economic Growth |
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what is a percentage rate of growth |
economic growth |
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what is growth as a whole |
economic growth |
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-increased more than sixfold -3.1% per year |
Growth in U.S. real GDP 1950-2012 |
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-Increased more than 3 fold -At roughly 2% per year |
Growth in U.S. real GDP per capita |
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what are the qualifications for economic growth |
-improved products and services -added leisure -other impacts |
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When did the economic growth start? |
began with the industrial revolution in late 1700's |
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where did economic growth begin |
began in Britain |
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how fast has economic growth spread? |
slowly |
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what is it the start |
starting date main cause of worldwide differences in living |
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what are five changes from modern economic growth
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-time for leisure -social change -Democracy -human lifespan doubled -ongoing increases in living standards |
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how is catching up possible |
-leader countries invent technology -follower countries adopt technology -can grow faster |
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what are six institutional structures of growth |
-strong property rights -patents and copyrights -efficient financial institutions -literacy and widespread education -free trade -competitive market system |
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strong property rights |
theoretical socially-enforced constructs in economics for determining how a resource or economic good is used and owned. Resources can be owned by (and hence be the property of) individuals, associations or governments.
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patents and copy rights |
a government authority or license conferring a right or title for a set period, especially the sole right to exclude others from making, using, or selling an invention.
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financial institutions |
an establishment that conducts financial transactions such as investments, loans and deposits. Almost everyone deals with financial institutions on a regular basis.
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Free trade |
international trade left to its natural course without tariffs, quotas, or other restrictions.
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competitive market system |
is one in which a large numbers of producers compete with each other to satisfy the wants and needs of a large number of consumers. In acompetitive market no single producer, or group of producers, and no single consumer, or group of consumers, can dictate how the market operates.
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what are the determinants of growth |
-supply fators -demand factors -efficiency factors |
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what are four supply factors
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-increases in quantity and quality of natural resources -increases in quality and quantity of human resources -increases in the supply (or stock) of capital goods -improvements in technology |
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examples of demand factors |
-households -businesses -government must purchase the economy's expanding output |
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efficiency factor |
must achieve economic efficiency and full employment |
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labor and productivity equation |
real GDP=hours of work x Labor productivity |
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four parts of accounting for growth with percents |
-technological advance (40%) -Quantity of Capital (30%) -Education and training (15%) -Economies of scale and resource allocation (15%) |
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What is the average rate of growth for the years 1973-1995 |
1.5% per year |
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what is the average rate of growth for the years 1995-2012 |
2.4% per year |
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what does productivity growth affect |
real output, real income, and real wages |
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"pay higher wage without lowering profit" is what? |
productivity growth |
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what technology is used for productivity growth |
microchip/information technology |
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what are start firms and increasing returns apart of |
productivity growth |
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what are sources of increasing returns apart of |
productivity growth |
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what are five types of sources of increasing returns |
-more specialized inputs -spreading of development costs -simultaneous -network effects -learning by doing |
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global competition is a part of what |
productivity growth |
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economies of scale |
a proportionate saving in costs gained by an increased level of production. |
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start up firms |
is an entrepreneurial venture which is typically a newly emerged, fast-growing business that aims to meet a marketplace need by developing or offering an innovative product, process or service. |
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increasing returns |
If output increases by less than that proportional change in inputs, there are decreasing returns to scale (DRS). If output increases by more than that proportional change in inputs, there are increasing returns to scale |
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network effects |
a phenomenon whereby a product or service gains additional value as more people use it. |
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anti growth view |
environmental and resources issues |
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in defense of economic growth |
-higher standard of living -human imagination can solve environmental and resource issues |
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as nations industrialize, their economies shift from agriculture to industry |
-fertility rates fall -decreases in population -each generation smaller than the one before |
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Inverse dependency ratio |
-social security issues -innovation and productivity |
